Mortgage apps rise as rates hit 2014 lows

by MPA22 Jan 2014
Mortgage applications were up last week as rates dropped, according to data released today.

The Mortgage Bankers Association’s Market Composite Index – which measures mortgage application volume – rose 4.7% on a seasonally adjusted basis last week. On an unadjusted basis, the index rose 7% from the previous week. The Refinance Index rose 10% from the previous week, and the seasonally adjusted Purchase Index was down 4%. On an unadjusted basis, the Purchase Index was up 2% from the previous week and 15% down from the same week a year ago.

The refinance share of mortgage activity was up two percentage points to 64% of all applications, the highest level in a month. The adjustable-rate share of mortgage activity decreased to 7%, according to the MBA.

Interest rates for 30-year fixed-rate mortgages, meanwhile, hit their lowest levels since November. The average rate for 30-year FRMs with conforming loan balances dropped to 4.57% last week from 4.66% the week prior. The average rate for 30-year FRMs with jumbo loan balances dropped to 4.57% from 4.58% the previous week.

The average rate for Federal Housing Administration-backed 30-yerar FRMs was also down, dropping to 4.24% last week from the previous week’s average of 4.29%.

The average rate for 15-year FRMs dropped to 3.68% -- its lowest level since December – from the previous week’s average of 3.72%.

The average rate for 5/1 ARMs was also down, dropping from 3.28% to 3.23%.
 

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